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May 03, 2023- Price action broke $1.62 below known Fib level ($82.13)
- Falling prices have precipitated Energy Select Sector SPDR Fund's approach to its lower Bollinger Band® at $81.44
Energy Select Sector SPDR Fund's bearish run has lasted 3 days so far (-96 cents). Yesterday's session continued the recent downtrend: a tough session dominated by bearish sentiment left XLE $3.66 lower, while setting a $79.74 to $83.28 session range.
Energy Select Sector SPDR Fund is now trading 6.28% below its 3-month high of $94.08.
Trend-following investors would be interested to note that the Commodity Channel Index (CCI) indicator is below -100, meaning the market price is unusually low and below its rolling moving average. Technical analysis indicates that a new, strong downtrend could be forthcoming with short positions favored. Price action pushed below a known Fibonacci support level at $82.13 by around $1.62 with prices hammering out a $79.74 – $83.28 range by session close. According to asset volatility analysis, Bollinger Bands® shows an indication of recovery: the lower band is at $81.44, a low enough level to, generally, suggest that Energy Select Sector SPDR Fund is trading below its fair value. Technical chart analysis shows Energy Select Sector SPDR Fund could begin to recover as it approaches significant support, now $1.44 away from $79.07. Dipping below could be an indication that further losses are ahead.
With market volatility ebbing, the current technical outlook indicates Energy Select Sector SPDR Fund will remain range-bound for the immediate future.
Fundamental indicators – United States JOLTs Job Openings (Mar) released yesterday at 14:00 UTC with a figure of 9.59 million, while the previous figure was 9.97 million.
In the meantime, negative performances are also seen in other markets, after ending yesterday's session at $40, BP lost $3.22 and is trading around $36.78. Chevron is down to $160.04, losing $7.2, after ending the previous session around $167.24. Exxon Mobil is down to $110.1, losing $4.57, after ending the previous session around $114.67.
Upcoming fundamentals: United States Crude Oil Inventories is projected to outperform its last figure with -1.1 million, having previously been at -5 million. The figure will be published today at 14:30 UTC.
